A Study On The Competitive Strategy Of Xiamen MD Glass Co., Ltd.

In recent years, more and more new float glass lines has been rapidly built up across China, which are supported by local government or invested by financial groups. In fact, glass supply tends to become surplus and waste a lot of social resources. Big without strength, large scale without economies scale is weakness of most of the companies within China glass industry.As an America-Sino joint venture founded in 1993, MD Glass(Xiamen) co.,Ltd.(MD Glass for short) benefited from strict inner control and effective operation, gains annual profit at RMB 50million and sets an excellent financial foundation . Although a single enterprise can not change the climate of market, it can keep its own style to live and win in the present market situation. Under this circumstance, MD glass shall take necessary step to clarify and strengthen a unique competitive strategy.Strategy calls for acceptance and rejection on all ambiguous choices in competition, and the essence of strategy requires enterprise act distinctively from the rival. Operation efficiency only ensure separated function running well, further strategic integration will create a compact chain and eliminate the follower. We believe that competitive advantage originates from the whole system, and integration of separated section will reduce the cost or lead to the differentiation.The paper tries to apply the Diamond Theory and the mode of Five-Force-of-Competition to analyze competitive advantage and industry structure of Chinese glass enterprises. It also aims to form the development direction of MD Glass based on the SWOT analysis. Conclusions can be drawn as following: MD Glass should take both focus and differentiation strategy to maintain and enlarge market share and achieve a yield higher than industry average income by establishing a concrete market position through differentiation strategy . The strategy implementation base on the Porter Value-Chain Model: reform the key links in enterprise value creation to enhance core competitiveness and obtain competitive advantages.The strategy ascertain combination of both environment and enterprise itself, which is inseparable. The author believes that it will give some instructive ideas and applied values for the development of MD Glass.